Reata Pharmaceuticals, Inc. (Nasdaq: RETA) and Biogen Inc. (Nasdaq: BIIB) announced today that they have signed a formal agreement under which Biogen will buy Reata for $172.50 per share in cash, representing an enterprise value of around $7.3 billion.
The development of therapies that control cellular metabolism and inflammation in severe neurologic disorders has advanced considerably thanks to Reata. The only FDA-approved medication for Friedreich’s ataxia (FA) is Reata’s SKYCLARYS® (omaveloxolone), which is currently undergoing a commercial launch in the United States and regulatory review in Europe. Reata is also creating a portfolio of cutting-edge products to treat various neurological conditions.
Shares of Biogen increased 1.2% in premarket trading on Friday but decreased when the market opened. The agreement comes at the conclusion of a tumultuous week for Biogen investors, who seem increasingly worried about the imminent FDA clearance decision for zuranolone, a depression medication viewed as crucial to the survival of the business.
“With extensive expertise in rare disease product development and global commercialization, as demonstrated by SPINRAZA and the most recent launch of QALSODY, we believe Biogen has the foundation in place to accelerate the delivery of SKYCLARYS to patients around the world,” said Christopher Viehbacher, President and Chief Executive Officer of Biogen. “SKYCLARYS is a superb addition to our global portfolio of treatments for neuromuscular and rare disease, and this is a rare opportunity for Biogen to strengthen our near-term growth trajectory.”
Warren Huff, Chairman and Chief Executive Officer of Reata, said that Biogen was the best option to assist SKYCLARYS reach its full potential because of its experience and commercial reach. “We believe Biogen will establish SKYCLARYS as the standard of care in the treatment of this devastating genetic disease,” says the company. “It has a clear understanding of the rare disease patient journey and existing commercial infrastructure.”
About Biogen
Founded in 1978, Biogen is a leading global biotechnology company that has pioneered multiple breakthrough innovations including a broad portfolio of medicines to treat multiple sclerosis, the first approved treatment for spinal muscular atrophy, and two co-developed treatments to address a defining pathology of Alzheimer’s disease. Biogen is advancing a pipeline of potential novel therapies across neurology, neuropsychiatry, specialized immunology and rare diseases and remains acutely focused on its purpose of serving humanity through science while advancing a healthier, more sustainable and equitable world.
About Reata
Reata is a global biopharmaceutical company committed to developing and commercializing novel therapeutics for patients with serious or life-threatening diseases with few or no approved therapies. Reata focuses on molecular pathways involved in the regulation of cellular metabolism and inflammation. Reata’s first product, SKYCLARYS® (omaveloxolone) has been approved by the FDA for the treatment of Friedreich’s ataxia and is under review in Europe by the EMA. In addition, Reata is developing cemdomespib for the treatment of patients with diabetic neuropathic pain. Cemdomespib is an investigational drug, and its safety and efficacy have not been established by any regulatory agency.
